Latest news with #KLACorp
Reuters
16-07-2025
- Business
- Reuters
Hewlett Packard signs cooperation deal with Elliott, adds tech veteran to board
July 16 (Reuters) - Hewlett Packard Enterprise (HPE.N), opens new tab has entered into a cooperation agreement with activist investor Elliott Investment Management, the server maker said on Wednesday. As part of the agreement, the company's board has named KLA Corp (KLAC.O), opens new tab Chairman Robert Calderoni as director. Elliott had built a stake of more than $1.5 billion in Hewlett Packard Enterprise, a person familiar with the matter had said in April.
Yahoo
30-04-2025
- Business
- Yahoo
KLA forecasts fourth-quarter results above estimates on steady demand for chipmaking tools
(Reuters) -Chipmaking equipment supplier KLA Corp forecast fourth-quarter revenue and profit above Wall Street estimates on Wednesday, indicating robust demand for its advanced chips that support artificial intelligence workloads. The company also postponed its investor day, which originally scheduled for June 18, to early-to-mid 2026, citing a "fluid business operating environment and potential implications" for its business. KLA's major customers, including Taiwan Semiconductor Manufacturing Co — its largest client — are ramping up orders for chipmaking tools amid strong demand for advanced chips and high-bandwidth memory used in AI "Though global trade dynamics are driving uncertainty across the global economy, to date, we have received no indications of demand changes from our customers for calendar year 2025," said CEO Rick Wallace. KLA expects fourth-quarter revenue to be in a range of $3.08 billion, plus or minus $150 million. On average, analysts estimate revenue of $3 billion for the quarter, according to data compiled by LSEG. The company also expects its adjusted per-share profit for the fourth-quarter to be $8.53, plus or minus 78 cents, compared with estimates of $7.99. KLA provides advanced equipment, process control software and services for manufacturing wafers, integrated circuits and other semiconductor components across the U.S., Europe and Asia. KLA reported third-quarter revenue of $3.1 billion, slightly above analysts' expectations of $3.01 billion. Its adjusted earnings per share for the quarter ended March 31 stood at $8.41 beating estimates of $8.10.
Yahoo
23-02-2025
- Business
- Yahoo
Is KLA Corp. (KLAC) the Best Performing Semiconductor Stock So Far in 2025?
We recently published a list of . In this article, we are going to take a look at where KLA Corp. (NASDAQ:KLAC) stands against other best performing semiconductor stocks so far in 2025. The performance of the semiconductor industry is commonly measured by the Philadelphia Semiconductor Index (SOX), a capitalization-weighted index comprising 30 of the largest U.S.-traded semiconductor companies. These firms play a critical role in designing, manufacturing, distributing, and selling semiconductors. Year-to-date (YTD), the SOX has delivered a solid return of 5.7%. However, when compared to other S&P 500 sector indices, it ranks seventh in performance, as of February 19. Still, the sector continues to outperform the broader S&P 500 Index, which has posted a 4.5% gain so far in 2025. This moderate growth comes on the heels of an impressive 19% surge in 2024. The semiconductor industry has shown resilience in 2025, navigating economic uncertainty, rapid technological advancements, and shifting geopolitical dynamics. Demand remains strong across key sectors, including consumer electronics, automotive, and industrial applications. Semiconductor innovation continues to drive transformative technologies, fuelling advancements in artificial intelligence (AI), autonomous vehicles, electric mobility, and next-generation wireless networks. As innovation accelerates, semiconductors will remain at the heart of technological progress, shaping a smarter, greener, and more connected future. The long-term outlook for the semiconductor industry remains robust, bolstered by policy support and investment in domestic chip manufacturing. According to the Semiconductor Industry Association (SIA)'s 2024 'State of the U.S. Semiconductor Industry' report, U.S. semiconductor manufacturing capacity is projected to more than triple between 2022 and 2032—making it the fastest-growing region in the world during this period. This growth is largely attributed to the CHIPS Act, which has incentivized investment in domestic production. The report further projects that by 2032, the U.S. will hold a 28% share of advanced semiconductor (sub-10nm) manufacturing capacity and capture 28% of global capital expenditures (capex) in the sector. Without the CHIPS Act, the U.S. would have secured only 9% of global capex. The industry's upward trajectory is reflected in its financial performance. SIA's latest report, published on February 7, 2025, revealed that global semiconductor sales reached $627.6 billion in 2024—a 19% increase from the previous year. This momentum is expected to persist, with double-digit growth anticipated for 2025. Despite strong growth prospects, the semiconductor industry is not without challenges. Geopolitical tensions, supply chain disruptions, and U.S. trade policies, including recently proposed tariffs, could pose risks. However, industry experts believe the direct impact of tariffs on semiconductors may be limited. In a recent CNBC interview, Stacy Rasgon, senior semiconductor analyst at Bernstein Research, noted that while the U.S. imports a substantial volume of semiconductors, only a small fraction originates from countries targeted by tariffs, such as China, Mexico, and Canada. As a result, the direct impact on semiconductor manufacturers is expected to be minimal. However, indirect effects—such as higher costs for consumer electronics and industrial products that incorporate semiconductors—could lead to weaker demand in some markets. For investors, the semiconductor sector continues to offer compelling opportunities, given its role in driving technological innovation. A strategic and well-researched approach is key to navigating market volatility while capitalizing on long-term growth. To identify the 10 best-performing semiconductor stocks year-to-date, we first screened all U.S.-listed semiconductor companies with a market price above $10 to exclude penny stocks. We then filtered these stocks based on their YTD returns and ranked the top 10 in ascending order, placing the best-performing stocks at the top. Additionally, we included data on hedge fund holdings in these companies as of Q4 2024 to provide further insight into investor are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (). The inner workings of a semiconductor manufacturing facility, neon hued machines humming with activity. YTD Returns: 20%KLA Corp. (NASDAQ:KLAC) is a prominent supplier of process control and yield management systems for the semiconductor industry. The company's comprehensive portfolio includes inspection, metrology, and data analysis solutions that assist semiconductor manufacturers in achieving optimal productivity and high-quality output. KLA Corp. (NASDAQ:KLAC)'s share price has rallied around 20% so far in 2025. Share price was supported by the strong Q2 FY 2025 results where revenue of $3.08 billion rose 23.7% year-over-year and came in at the upper end of the company's guidance. Adjusted EPS came in at $8.2, up 33% year-over-year. Analysts remained positive on the stock with overall growth driven by the AI-led demand. On January 31, an analyst from Needham raised the price target on the company to $830 from $800 and reiterated a Buy rating on the shares. The analyst was encouraged by the strong results but believed that guidance was conservative as it reflected revenue growth of 11% in 2025. He still saw the guidance as strong in comparison to the wafer fabrication market growth expectation of only the mid-single-digit. Overall, KLAC ranks 10th on our list of best performing semiconductor stocks so far in 2025. While we acknowledge the potential of KLAC to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KLAC but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
31-01-2025
- Business
- Yahoo
KLA Corp (KLAC) Q2 2025 Earnings Call Highlights: Record Revenue Amid Export Challenges
Revenue: $3.08 billion for the December quarter, above the guidance midpoint of $2.95 billion. Annual Revenue: $10.85 billion for calendar 2024, a 12% increase. Process Control Revenue: Grew by over 12% in 2024. Services Business Revenue: $667 million in the December quarter, up 4% sequentially and 18% year over year. Gross Margin: 61.7% for the December quarter. Operating Margin: 42.3% for the December quarter. Net Income: $1.1 billion for the December quarter. Free Cash Flow: $757 million for the December quarter. Cash Flow from Operations: $850 million for the December quarter. Total Cash and Equivalents: $3.8 billion at the end of the December quarter. Debt: $5.9 billion at the end of the December quarter. Capital Return: $877 million in the December quarter, including $650 million in share repurchases and $227 million in dividends. Non-GAAP Diluted EPS: $8.20 for the December quarter. GAAP Diluted EPS: $6.16 for the December quarter. Operating Expenses: $596 million for the December quarter, with $342 million in R&D and $254 million in SG&A. Effective Tax Rate: 13.7% for the December quarter. Warning! GuruFocus has detected 5 Warning Signs with GSIT. Release Date: January 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. KLA Corp (NASDAQ:KLAC) achieved a record revenue of $10.85 billion in 2024, marking a 12% growth year-over-year. The company maintained industry-leading gross and operating margins at 61% and 41%, respectively. KLA Corp's Services business grew 15% to $2.5 billion for the year, marking 50 consecutive quarters of growth. Advanced Packaging revenue is expected to exceed $800 million in 2025, up from $500 million in 2024. KLA Corp returned $2.9 billion to shareholders through dividends and share buybacks in 2024. KLA Corp faces a potential $500 million revenue impact in 2025 due to new US government export controls affecting China. The company's China revenue is expected to decline by approximately 20% in 2025. There is uncertainty regarding the processing of export licenses by the US government, which could affect revenue. Operating expenses are expected to increase by approximately $15 million per quarter in 2025. The effective tax rate is expected to rise slightly to approximately 14% in the second half of 2025 due to global taxation changes. Q: What is the outlook for the process control market in 2025, and how does KLA's share compare? A: Bren Higgins, CFO, stated that KLA expects the process control market to grow solidly in 2025, driven by increased investment in leading-edge technologies. KLA's share of the WFE market is expected to increase due to higher process control intensity, particularly in advanced DRAM and high-bandwidth memory, as well as growth in advanced packaging. Q: How is KLA managing the impact of new US export controls on its revenue? A: Bren Higgins, CFO, mentioned that KLA estimates a revenue impact of approximately $500 million, plus or minus $100 million, due to recent export controls in China. The company is hopeful for licensing opportunities to mitigate some of this impact but remains cautious due to potential delays in processing license requests. Q: Can you elaborate on the growth expectations for KLA's advanced packaging business in 2025? A: Richard Wallace, CEO, explained that KLA's advanced packaging revenue is expected to exceed $800 million in 2025, up from $500 million in 2024. The growth is driven by increased demand for complex heterogeneous chip integration and advanced packaging solutions, which enhance the value of process control. Q: What are the key drivers for KLA's outperformance relative to the WFE market? A: Bren Higgins, CFO, highlighted that KLA's outperformance is driven by rising process control intensity at advanced technology nodes, particularly 3-nanometer and high-bandwidth memory. Additionally, KLA's strong market position and product momentum in various segments contribute to its growth. Q: How is KLA addressing the potential decline in China sales due to export controls and market dynamics? A: Bren Higgins, CFO, indicated that KLA expects China sales to decline by about 20% year-over-year in 2025, with China contributing approximately 29% of total revenue. The company is focusing on opportunities outside China to offset this decline and maintain growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 登入存取你的投資組合
Yahoo
31-01-2025
- Business
- Yahoo
KLA Corp (KLAC) Q2 2025 Earnings Call Highlights: Record Revenue Amid Export Challenges
Revenue: $3.08 billion for the December quarter, above the guidance midpoint of $2.95 billion. Annual Revenue: $10.85 billion for calendar 2024, a 12% increase. Process Control Revenue: Grew by over 12% in 2024. Services Business Revenue: $667 million in the December quarter, up 4% sequentially and 18% year over year. Gross Margin: 61.7% for the December quarter. Operating Margin: 42.3% for the December quarter. Net Income: $1.1 billion for the December quarter. Free Cash Flow: $757 million for the December quarter. Cash Flow from Operations: $850 million for the December quarter. Total Cash and Equivalents: $3.8 billion at the end of the December quarter. Debt: $5.9 billion at the end of the December quarter. Capital Return: $877 million in the December quarter, including $650 million in share repurchases and $227 million in dividends. Non-GAAP Diluted EPS: $8.20 for the December quarter. GAAP Diluted EPS: $6.16 for the December quarter. Operating Expenses: $596 million for the December quarter, with $342 million in R&D and $254 million in SG&A. Effective Tax Rate: 13.7% for the December quarter. Warning! GuruFocus has detected 5 Warning Signs with GSIT. Release Date: January 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. KLA Corp (NASDAQ:KLAC) achieved a record revenue of $10.85 billion in 2024, marking a 12% growth year-over-year. The company maintained industry-leading gross and operating margins at 61% and 41%, respectively. KLA Corp's Services business grew 15% to $2.5 billion for the year, marking 50 consecutive quarters of growth. Advanced Packaging revenue is expected to exceed $800 million in 2025, up from $500 million in 2024. KLA Corp returned $2.9 billion to shareholders through dividends and share buybacks in 2024. KLA Corp faces a potential $500 million revenue impact in 2025 due to new US government export controls affecting China. The company's China revenue is expected to decline by approximately 20% in 2025. There is uncertainty regarding the processing of export licenses by the US government, which could affect revenue. Operating expenses are expected to increase by approximately $15 million per quarter in 2025. The effective tax rate is expected to rise slightly to approximately 14% in the second half of 2025 due to global taxation changes. Q: What is the outlook for the process control market in 2025, and how does KLA's share compare? A: Bren Higgins, CFO, stated that KLA expects the process control market to grow solidly in 2025, driven by increased investment in leading-edge technologies. KLA's share of the WFE market is expected to increase due to higher process control intensity, particularly in advanced DRAM and high-bandwidth memory, as well as growth in advanced packaging. Q: How is KLA managing the impact of new US export controls on its revenue? A: Bren Higgins, CFO, mentioned that KLA estimates a revenue impact of approximately $500 million, plus or minus $100 million, due to recent export controls in China. The company is hopeful for licensing opportunities to mitigate some of this impact but remains cautious due to potential delays in processing license requests. Q: Can you elaborate on the growth expectations for KLA's advanced packaging business in 2025? A: Richard Wallace, CEO, explained that KLA's advanced packaging revenue is expected to exceed $800 million in 2025, up from $500 million in 2024. The growth is driven by increased demand for complex heterogeneous chip integration and advanced packaging solutions, which enhance the value of process control. Q: What are the key drivers for KLA's outperformance relative to the WFE market? A: Bren Higgins, CFO, highlighted that KLA's outperformance is driven by rising process control intensity at advanced technology nodes, particularly 3-nanometer and high-bandwidth memory. Additionally, KLA's strong market position and product momentum in various segments contribute to its growth. Q: How is KLA addressing the potential decline in China sales due to export controls and market dynamics? A: Bren Higgins, CFO, indicated that KLA expects China sales to decline by about 20% year-over-year in 2025, with China contributing approximately 29% of total revenue. The company is focusing on opportunities outside China to offset this decline and maintain growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
